Global Capital Oct08

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technology focus
Nigel Robbins, managing director, GeoSolveIT Ltd
[Contribution: Andrew Zolnai, Associate Consultant]
Taking advantage of geography to maximise
decision making and performance
Maps have always been an important information tool for resource and energy organisations. By
using Geospatial/Geographic Information Systems (GIS), resource companies can help improve their
understanding, decision making and performance within their organisation. Widely recognised as a
key tool to help organisations better manage their asset base, GIS is uniquely placed to help combine
disparate data and provide a powerful visual integration of an organisation’s enterprise data. This
article will introduce the key areas for applying GIS, the benefits an organisation can realistically
expect to achieve and some of the challenges and issues likely to be encountered. In this edition, we
have asked GeoSolveIT, an award winning and independent provider of business ICT solutions using
geographic information systems (GIS) to provide us with an overview of how organisations involved in
the metals, minerals and energy market can leverage the use of geographic information to help
improve strategic and operational decision-making.
It is often stated that 85-90% of business data has a ge-
make more informed decisions. Provided it is possible to
ographic component. This is most definitely the level of relate information held to a location or geographic area
geographic content that would be expected within natural (say a mine or political boundary of operation), it is then
resource organisations. For example, in the June 2008 possible to consider the use of GIS-technologies to bring
edition of Global Capital Magazine, 3D laser mapping was together disparate data in a highly effective and informative
discussed as a technology to help capture topographic manner. Crucially, GIS can help decision-makers visualise
information in order to assemble key data about geographic relationships through the use of a map base to
volumetric information for mines. Geographic integrate and derive additional value from otherwise
Information System (GIS) can help organisations improve disparate information repositories scattered across their
their decisions by combining geography and its associated organisation. GIS is therefore more than just a tool to
information. Whether it is analysis of land ownership create hardcopy maps, (although this is often a key
boundaries, permitting, infrastructure location decisions, or output), it is an effective and exible tool with the potential
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the operational management of your assets, if you have to offer businesses a highly pervasive analytical solution
not considered using GIS, you may be failing to maximise that transcends an organisation and delivers genuine
the returns on your assets. How organisations collect, returns on investment. The power of information
management within the context of GIS should not be
manage and report geographic- related information is
underestimated.
vital. Geographic data should be one part of an
organisation’s wider consideration in its information The Geospatial Information Technology Or-
management strategy. How this data is harnessed within ganisation (GITA) is a global professional association
an organisation will directly impact representing the interests of users and vendors of GIS
the benefits realised. technologies around the world. Major asset owners are
members of GITA, including most of the major oil and gas
So just what is GIS? companies. Bob Samborski, executive director of GITA
In its simplest terms, GIS provides organisations within the remarks: “In its simplest form, the term ‘Geographic
metal, minerals and energy industries with the capability to Information System’, or GIS, is an acronym for a
manage data. GIS brings information from one or more technology that offers a radically different way in which we
data sources and analyses and presents this within a produce and use the maps required to man- age our
single uni ed map-based environment to help communities and industries. Using computer

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technology focus
programmes, the technology links items displayed on a This will be easy to use and provide the executives
map with records in a database with the answers with a ‘one-solution’ to identify key performance data
displayed on a map. The resulting combination, on the organisation’s assets. Just how might this work?
and the ability to manipulate the data in response to • In its centre, a world globe with polygons outlining
any number of ‘what if’ scenarios, provides industries asset ownership, colour-coded by profitability, and
with a powerful and dynamic new tool that has that can be zoomed in to show colour coding by
opened doors in management effectiveness and percent ownership, and zoomed further in will pop
organisational efficiency. A GIS creates intelligent up the contact information for each operational or
super maps through which sophisticated planning and division manager;
analysis can be per- formed at the touch of a button.” • To the right are listed key economic indicators
Many will have no doubt encountered the term ‘GIS’ in that are rendered on the globe view;
discussion. However clients will describe GIS in ac- • To the left is a list of menus that provide the
cordance with their own experience and exposure to capability to drill down by operational unit
the technologies. Some may see it as a way of working, (the central globe view having changed to a
others a toolset, others a general framework for manag- map view similar to operation managers’);
ing data, others simply as a way to map information. • At the top left and right are small windows
Whichever definition they use does not matter. The key is with date, time and stock ticker values;
that GIS has been recognised as a toolset that helps the • The bottom half is split among calendar to
business add greater value to the tasks and decisions it the left , and emails to the right.
makes as an organisation. Indeed as many organisations
This would allow executives to quickly scan an area
realise the extra value GIS can add, their definition of the of interest before its operational manager visits, and
technology will change. helps fully prepare for negotiations with joint-venture
Increasingly with the advent of the World Wide partners later that morning. Then they can quickly re-
Web, GIS is now an embedded capability often view – that is, view roll-ups and not input - engineering
subservient to a range of information solutions across details to be fully briefed on a trouble spot with eld
if
an organisation. Most recently, the advent of Google managers that afternoon. It also allows the executive –
Maps and Virtual Earth has done much to increase the who isn’t and shouldn’t be a technical expert – to pull
exposure of the use of mapping to support the various maps and tables into a vibrant and pertinent
dissemination of web-based mapping applications. In presentation to investors later that evening (Figure 1).
both cases, the power to visualise and readily This is just one example of how geography and
understand key relationships in data is vital. information can combine to bring about real value and
appreciation of the business. By bringing together data
Executive GIS across the organisation and linking to a map base,
Imagine the ideal dashboard for the executive team. organisations have an immensely powerful way to
Figure 1: A typical GIS
dashboard showing a range
of information all available at
the touch of a button.

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technology focus
understand and communicate key strategic and Making the right choice – the
operational data. case for ROI and GIS
To help understand where in a business GIS can add
GIS throughout the business greatest value, one needs to understand where the great-
As already noted, GIS has the potential to have an im- est returns for a business investment can be achieved. It is
pact across the business. So just how might GIS impact notoriously difficult to place a monetary value on some of
metals, minerals and energy companies? the qualitative aspects of using spatial data, but
Crucially, because a GIS may be an embedded nevertheless case studies have been undertaken and
technology subservient to other technologies (for there are a number of organisations that have used the
example the corporate intranet or operational asset technology on a targeted basis and driven large returns to
management system) the use of GIS technologies may their business. To help resolve some of these issues within
not and – this author would argue – do not need to be asset owners, GITA has developed its return on
‘called’ GIS. Instead GIS, if it is to grow and develop in investment (ROI) approach. This provides a structured
its maturity within an organisation it must become a approach to determining the return on investment
tool as part of a wider business-focused information through a proven methodology. This will help an or-
solution that integrates disparate datasets. ganisation target those ‘killer’ applications that will
Selected examples of GI technology adoption provide the organisation with the best return on invest-
in the resources industries are: ment by identifying the expected benefits arising from
implementation. This will help to develop the priorities
for the development of GIS technologies within the
organisation.
Application Description
The key challenges
PDA Field data capture of competitor well Looking to the future, the need and use of GIS tech-
locations, own pipeline segments, nologies as a means of improving decisions within
mining equipment etc. organsations will only increase. As more real-time
monitoring and better understanding of an organisa-
PDA Field data delivery for seismic surveys, tion’s assets are required, using geographic information
environmental monitoring etc. will become an increasingly important part of the in-
formation strategy to help realise greater performance.
Desktop Integration of remote sensing, map Knowing the ‘where’ in response to questions about the
data, scans, etc., all properly registered performance of the assets will continue to be an essen-
geographically. tial information dimension when making strategic and
operational decisions.
Desktop Analysis of pipeline routing, play gen- To make GIS work for the implementing organisa-
eration, mine planning, environmental tion it must become a more widely adopted technology
permit application etc. that enables the ready adoption and sharing of infor-
mation. All too o en, GIS technologies are used in
Desktop/web Map and table data integration, in- standalone applications; in these instances their value
ternal from teams or management, is ‘locked in’ with the application and not shared in the
external from partners or agencies wider enterprise environment. Bringing about greater
integration of GIS technologies requires the
Web browser Map-based data entry or processing achievement of a number of fundamental tasks:
on secure intranet from remote office • Demonstrating the business case and convincing
locations anywhere. senior management that the outlay to implement
GIS within their organisation is vital. As stated
Web browser Map-based report delivery on open above, the work of the US-based Geospatial Infor-
extranet to partners, agencies and the mation and Technology Association (www.gita.
public anywhere. org) provides a proven methodology for showing
determining the return on investment arising from
Web server Centralised geo-processing of large the adoption of GIS technologies;
data sets, for remote offices access on • Creating enterprise-wide standards, in particular
ultra-secure intranet. relating to the capture of data such that information
can readily be captured once, but used many times.
Web server Mash-up of company vector/tabular In doing so, the sharing of data within a
(GIS and otherwise) and public/ven- standards-based geographic framework will en-
dor raster/vector data. sure that any form of collected data – for example,
geological data, asset locations – can all be shared
Web server Integration with corporate ultra-secure and analysed with confidence concerning the posi-
intranet of nancial, asset management
if
tional accuracy of the diverse datasets;
and infrastructure data. • In creating standards, a unified data model that

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technology focus
transcends the organisation will be required if syndication;
information ows are to be minimised.
lF This is 2. The potential now exists with GIS to ensure data
particularly important to the geographic definition is never re-created, it is always augmented with
of the assets. Ideally, a single asset model should additional information anchored to identical
underpin the display and analysis of spatial data reference points, e.g. production measurement
such that data can be shared using the same information gathered over time into a SCADA
geographic framework and tools. By adopting system. is could be readily brought together
standards, this will enable sharing and ease of through an intuitive mapping interface
reporting of asset- related information. (development/transportation...this is aggregation
3. The same GI framework can be served up
Implementing GIS within the business on the web for remote access to joint
There is a generic business process ow lf venture partners or government regulatory
common to most resource companies ‘from cradle bodies (transportation/ divestiture), all with
to grave,’ and is depicted below in Figure 2. proper access privileges...this is entitlement.
The key ingredients of GIS are location and at- Figure 2: A
In the case of petroleum companies, it is now typi-
generic business ow
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tribute data – information that is pertinent throughout a cal that Petroleum Exploration and Production (E&P) diagram showing
project. By using GIS, information about the project can be maps, and therefore geospatial data, are used from the business practices
employed by most
geo-referenced and hence searched, queried and initial planning stages. For example, surface infrastruc-
resource companies.
reported from the same database based on its ture data for location (existing roads and pipelines) and
location as well as and in combination with environment (populated or environmentally sensitive
other attributes. Envisage a project where areas), as well as subsurface geological and geophysical
information is processed from one step to another: data (drilling and seismic) for the imaging and delineation of
1. Say a seismic survey is used to spot a well (plan- potential subsurface reservoir targets can all be displayed,
ning/exploration), then to set up the proper analysed and reported using GIS.
spacing for production wells (production/develop- Once an exploration or development programme is
ment), and nally used to tie in the
if eld gathering
if commissioned it is critical to precisely de ne any suc-
pipelines (transportation). All such information can cessful venture that the knowledge gained until then is
be managed and visualised via the GIS...this is verified and augmented in order to refine and precisely
Case Study 1: Pipeline regulations tion (against metal corrosion) and MAOP (maximum allowable operating
pressure) of the pipeline against prescribed standards. The tracking, cal-
culation and mapping of so-called High Consequence Areas is best han-
In the 2003 public consultation‘RSPA-00-7666,’ the US Pipeline & dled by GIS, as it keys all pertinent data to their location, and calculations
Hazards Material Safety Administration (PHMSA) pegged a return- of buffer areas along the length of a pipeline are not simple (the diagram
on-investment based on the annual cost versus benefits of pipeline below is from the US PHMSA, Part 192 – Transportation of Natural and
integrity management, against an initial outlay. other Gas by Pipeline: Minimum Federal Safety Standards).
Pipeline inspections mentioned above, and regular auditing for merg-
ers and acquisitions or communications with emergency management
teams (internal or external) for example, require detailed and timely re-
porting of the locus, status and the state of the pipeline network at any
Pipeline transmission and distribution companies have an infrastruc- given time (planned or unplanned). GIS data management means that all
ture of pipelines last decades or more. And they carry ammable liquids
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information is maintained accurately and thus ready to be queried and
at or near the surface. Their proper planning and location is therefore reported upon. GIS tools will, moreover, allow managers to be specific on
more critical, to the extent that stringent environmental regulations which section they need reporting at any time.
must be met by 2009 in Europe. How can GIS help?
New pipeline regulations not only restrict the proximity of at-risk ar-
eas (environmentally sensitive, more dense and less mobile population), 1
http://www.phmsa.dot.gov/
they require the reporting and periodic inspection of cathodic protec- 2
http://www.hse.gov.uk/pipelines/hseandpipelines.htm#legislation

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technology focus
with much better insight into the potential prospectivity
Case Study 2: STRIKE of an area.
compass the data and methods of
According Kon Vatskalis, Northern Territory mines and capture as well as common stand-
The Northern Territory government in Australia identified energy minister: “STRIKE is an exciting tool that can be ards for reporting on the asset;
that to ensure future investment in the territory’s mining ac- cessed by explorers wanting to do business in the
sector, it needed to encourage exploration throughout territory. This is a fully interactive application, allowing • Integrative workflows: All
the region. The government launched ‘Building the Ter- minerals and petroleum exploration companies to add or information is at hand and can
ritory’s Resource Base’, an incentive programme remove layers of information, zoom in and out of the map
aimed at promoting the prospectivity of the Northern display and search for specific information to determine be modelled into workflows that
Territory through the delivery of quality geoscientific data the prospectivity of any area in the Northern Territory.” help develop every step of the
to exploration companies both in Australia and overseas.
The key challenge facing the petroleum or mining life cycle;
government was how to make its • Measurable ROI: Pegging mon-
large amount of geological data
(much of which are stored in dis- etary values to the geographic and
parate formats) easily accessible engineering framework allows to
to potential explorers, especially
given the remoteness of the ter- calculate, predict and adjust
ritory. the economics for better pro t;
The result was STRIKE,
a toolset developed by • Rational framework: A single
NGIS Australia for the Northern
ground truth of all relevant surface
Territory government. STRIKE’s
ability to interact with multiple data infrastructure and subsurface E&P;
sources enables users to spatially
• Audit and reporting: All the per-
compare both vector and raster
geological, geophysical, explora- tinent information can be queried
tion, tenement and ancillary data for
the entire Northern Territory. Vector
and tabulated in its location and
layers can be queried and temporal context, and thus can be
downloaded, providing explorers
reported upon for audits.
de ne the programme that will be presented to external Concluding remarks
stake holders (e.g. joint venture partners and local agen- From this brief overview, it becomes clear that a geo-
cies). This may include plans to delineate the location, information framework can only benefit the business
factors and costs of the programme, a means to moni- processes of a petroleum or mining company. And it
tor their evolution through the life of the programme can only help in days of intense competition for permits
and timely maps and reports that will keep all parties and capital, and even more intense scrutiny of internal
informed and engaged. audit and external scrutiny – corporate transparency is
now truly possible with an end-to-end geo-information
Towards a strategy for adoption system that is both internally rigorous and externally
Here are some of the key factors to consider when visible.
adopting and developing GIS in a resource organisa-
tion: About the author
• Have agreed standards: Standards should be defined Nigel Robbins is the managing director of GeoSolveIT
to enable easy sharing of information. This should en- Limited, an independent GIS consultancy. Nigel has
advised a number of organisations
user appeal, the ioMaps system demonstrates an innova- around the world on the use and
Case Study 3: BHP Billiton tive and sophisticated approach to integrated spatial ap- implementation of GIS technolo-
plications. It successfully utilises web services and a pow-
As a global market leader, BHP Billiton has been quick to erful tasking engine to combine more than 800 datasets gies.
recognise that mining, more than most other industries, which interact seamlessly with business processes via a Tel: +44 (0) 1372 825184
depends on locational information. Accurate, accessible single browser interface.
and reliable knowledge about the position of infrastruc- It would also help the company satisfy growing public Fax: +44 (0) 1372 825134
ture, such as lease boundaries, rail lines, heritage sites and demand for accountability by integrating environmental Email: Info@GeoSolveIT.com
plant, is crucial to both the effective optimisation of an and cultural heritage information with mining and geo-
orebody and to preserving community support for min- logical data in a single, holistic view that was available to www: www.GeoSolveIT.com.
ing activities. all staff .
In 2005, BHP Billiton Iron Ore acknowledged that it The application sets a new benchmark in Australia’s
needed a system to manage and access location data at mining industry and helps to increase productivity, re-
an enterprise level and commissioned NGIS Australia to duce cost and risk, and improve the speed and accuracy
develop a solution. Although many business units collect- of critical decision-making.
ed and used spatial data, there was limited coordination
of software and methods, and
no easy way for information to
be shared. This ad-hoc approach
met localised needs, but failed
to deliver consistent, accurate
information on a timely basis to
the organisation as a whole.
The review identified that a
uniform spatial approach was
likely to deliver significant time
and cost savings while helping
to alleviate the multi-million dol-
lar risks associated with inappro-
priate infrastructure placement,
inaccurate property boundaries,
or operational activities being
carried out in the wrong place.
Notable for its simplicity and